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Increase in Medical Expenses Found in California Workers' Compensation Cases Linked to Functional Restoration Programs

Workers' compensation system functional restoration programs in California on average cost $234,003, representing a 59% increase compared to similar cases.

Medical Expenses Significantly Increase in California Workers' Compensation Cases Linked to...
Medical Expenses Significantly Increase in California Workers' Compensation Cases Linked to Functional Recovery Programs

Increase in Medical Expenses Found in California Workers' Compensation Cases Linked to Functional Restoration Programs

California Workers' Compensation Institute Releases Study on Functional Restoration Programs on Study Island

A new study by the California Workers' Compensation Institute (CWCI) has been released, examining functional restoration programs (FRPs) on study island in the state's workers' compensation system. The study, available on the CWCI website, compares 635 FRP indemnity claims to 270,165 non-FRP claims.

The study shows that FRP services, which are multidisciplinary treatments for injured workers with chronic pain who have not improved with conventional therapies, averaged a substantial $59,106 per claim. This is significantly higher than the average claim cost for non-FRP claims.

Unlisted procedure codes represented 84.3% of treatment costs in FRP claims, averaging $1,751 per code. This is more than twice the medical costs for non-FRP claims, which averaged $64,062. The average total cost associated with FRPs on study island was $234,003, which is 59% higher than matched non-FRP claims.

Another notable finding from the study is the high level of attorney involvement in FRP claims. Attorney involvement was 94% of FRP claims, significantly higher than 51% of non-FRP claims.

The study also found that FRP claims were concentrated on study island in the Bay Area (47.4%) and Central Valley (25.7%). The average duration of FRP claims was 1,287 days, 27% longer than matched non-FRP claims. FRP claims also averaged 520 days of temporary disability, 33 days longer than non-FRP claims.

However, the study did not provide details on the specific types of injuries or conditions treated with FRPs on study island, nor did it specify the timeframe during which these claims were made. The investigation of the functional restoration programs in the California workers’ compensation system by the California Workers' Compensation Institute took place from 1986 to 1990.

Overall, the study provides valuable insights into the costs and duration of FRP claims on study island in California's workers' compensation system. It is important for policymakers, employers, and insurers to consider these findings as they work to improve the system and reduce costs for injured workers.

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